ETF Research Center

The Franklin Liberty U.S. Low Volatility ETF is an actively-managed fund which seeks capital appreciation with lower volatility than the Russell 1000 Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Franklin ETF Trust
Website	www.libertyshares.com
Inception date	Sep 20, 2016
Assets (mns)	$72
Currency	USD
Expense ratio	29 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Proprietary
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	83
Wgt avg mkt cap (mns)	$163,520
Large cap (>$10bn)	98.8%
Mid cap ($2-10bn)	1.2%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	15.4 %
APPLE INC	1.6 %
SYNOPSYS INC	1.6 %
MASTERCARD INC-CLASS A	1.5 %
INTUIT INC	1.5 %
VISA INC-CLASS A SHARES	1.5 %
GLOBAL PAYMENTS INC	1.5 %
MICROSOFT CORP	1.5 %
TEXAS INSTRUMENTS INC	1.5 %
ORACLE CORP	1.5 %
INTL BUSINESS MACHINES CORP	1.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	91.3 %
	IRELAND	3.8 %
	BRITAIN	1.7 %
	CANADA	1.4 %
	SWITZERLAND	1.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
32.7%	32.7%	--	--	15.6%

Market Correlations
versus...	Beta	R-squared
S&P500	0.83	93%
MSCI EAFE	0.73	60%
MSCI Emg. Mkts.	0.47	42%

Technical Indicators
Recent close	$39.18
30d moving avg.	$38.16
Annualized volatility	10.4%
Short interest (ETF)	0.1%
Relative strength (RSI)	74

Liquidity measures
Avg. volume (thou.)	15
Turnover	0.8%
Bid/Ask (% of price)	0.25%
ADV underlying (mns)	$46,462

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Franklin Liberty U.S. Low Volatility ETF based on the alternatives' overlap in portfolio holdings with FLLV. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FLLV

Expense:

29 bp

ALTAR Score™:

5.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FLLV
Ticker	Fund Name	Overlap¹ vs FLLV (%)	Expense ratio (bp)	Savings vs FLLV (bp)	ALTAR Score™ (%)	ALTAR vs FLLV (%)
DEF	Invesco Defensive Equity	46.5	59	-30	4.7	-0.4
HUSV	First Trust Horizon Managed Volatility Domestic	46.4	70	-41	4.7	-0.4
OVOL	Invesco Russell 1000 Low Volatility Factor ETF	45.1	19	10	5.4	+0.3
FDLO	Fidelity Low Volatility Factor	44.6	29	0	5.1	-0.0
USMV	iShares MSCI USA Minimum Volatility	43.0	15	14	5.0	-0.1
XRLV	Invesco S&P 500 ex-Rate Sensitive Low Volatility	41.5	25	4	5.7	+0.6
EQWL	Invesco Fundamental Pure Large Core	41.4	25	4	6.0	+0.9
USMC	Principal U.S. Mega-Cap Multi-Factor Index	40.5	12	17	5.1	+0.0
OEF	iShares S&P 100	39.9	20	9	5.1	+0.0
IWL	iShares Russell Top 200	39.6	15	14	5.3	+0.2
MGC	Vanguard Mega Cap 300 ETF	39.2	7	22	5.5	+0.4
QUS	SPDR MSCI USA Quality Mix	38.6	15	14	5.6	+0.5
SNPE	Xtrackers S&P 500 ESG	38.3	11	18	5.4	+0.3
LGLV	SPDR Russell 1000 Low Volatility	38.2	12	17	5.0	-0.1
MMTM	SPDR S&P1500 Momentum Tilt	37.7	12	17	5.1	-0.0
FDMO	Fidelity Momentum Factor	37.4	29	0	3.9	-1.2
LVUS	Hartford Multifactor Low Volatility US Equity	37.4	21	8	5.6	+0.5
SPXN	ProShares S&P 500 Ex-Financials	37.0	27	2	5.5	+0.4
XLG	Invesco S&P Top 50	36.6	20	9	4.8	-0.3
NACP	Impact Shares NAACP Minority Empowerment	36.6	75	-46	5.1	+0.0

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

Content on this tab for subscribers only**

RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

Content on this tab for subscribers only

VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Franklin Liberty U.S. Low Volatility
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	17.9	%
Divided by: Fwd. P/BV	3.3	x
Less: Expense ratio	29	bp
Equals: ALTAR Score	5.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.50	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.